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AFRICA’S TOP 5 OIL PRODUCING NATIONS AS OF DECEMBER 2022

AFRICA’S TOP 5 OIL PRODUCING NATIONS AS OF DECEMBER 2022
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Faith Nyasuguta

In 2022, the energy sector took a huge hit globally, owing to a chain of economic complications that swept through the entire planet.

Last year, which was foreshadowed to be where the earth would rehabilitate completely from the Covid-19 pandemic became defined by the scramble for alternative fuel sources that partially sparked inflation rates across the globe to skyrocket. 

The reliance of Europe on Russia’s Liquified Natural Gas became a thorn in the flesh of the continent owing to the conflict between Russia and Ukraine. 

Unfortunately, the scramble for alternative energy sources did not only affect the oil sector, but also entire economies all over the world. 

/NS Energy/

The Organization of Petroleum Exporting Countries (OPEC) says that 2022 saw central banks across the globe revise their monetary policies in a bid to counter the rising levels of inflation spurred by the COVID-19 situation in China and the geopolitical developments in Eastern Europe, which both contributed to oil market volatility over the course of the year.

In Africa, nations like Nigeria experienced a sharp drop in oil production owing to insecurity and vandalism of oil infrastructure. Production numbers declined for months and Nigeria’s oil performance as a whole tanked. 

These complications persisted throughout 2022, as global production of oil still had a sub-par performance in the last month of the year.

These complications inevitably affected oil prices, and according to an extract from OPEC’s monthly oil report, crude oil futures prices also dropped in December amid heavy selloffs in futures markets, a decline in major equity markets and elevated volatility, which offset risks related to supply disruption.”

“Worries about the economic and demand outlook amid rising global COVID-19 cases in Asia, especially in China and lower refining margins for gasoline and diesel/gasoil in Europe and the US, weighed on oil prices”

The report further revealed that crude oil spot prices which fell in December, “were pressured by growing concerns of an economic slowdown in major economies that dampened market sentiment regarding demand outlooks.”

Despite these setbacks, Africa still remains a major oil contributor on a global scale and oil rich countries within the continent still procured a semblance of the oil quota expected of them. 

Below are 5 of the highest producing oil countries in Africa as of December 2022. The figures below represent oil production in thousands of barrels per day (tb/d). Also these figures are based on OPEC’s secondary sources.

/OPEC/
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Faith Nyasuguta

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